Bitcoin Suddenly Looks ‘Overbought’ As Ethereum, Cardano, BNB, XRP, Solana And Dogecoin Join Huge Price Rally
Bitcoin has hit a fresh all-time high today, climbing to just over $67,000 per bitcoin on the Luxembourg-based Bitstamp exchange—more than double where it started 2021.
The bitcoin price has added over 40% over the last 30 days, with other major cryptocurrencies ethereum, cardano, Binance’s BNB, Ripple’s XRP, solana and dogecoin all riding its coattails higher. The combined crypto market has also surpassed its previous all-time high, set in May, breaking $2.6 trillion for the first time.
Ahead of the first U.S. bitcoin futures exchange-traded fund (ETF) launching on the New York Stock Exchange, hedge fund manager Mark Yusko warned the bitcoin price could be due a pullback, calling bitcoin “overbought.”
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“I wouldn’t be surprised by a little consolidation,” Yusko, who’s the chief executive and chief investment officer of Morgan Creek Capital Management, told CNBC, adding he’s “excited” by the ETF approval.
“Look, we’re up 40% this month which is only 15 days old—a ‘pause that refreshes,’ given how overbought we are right now, wouldn’t surprise me. There is some risk of the ‘buy the rumor, sell the news.'”
Bullish bitcoin and crypto traders sent the bitcoin price sharply higher yesterday after ProShare’s bitcoin futures ETF began trading in New York, clocking up a near-5% stock price rise and almost $1 billion in intra-day trading volume.
Yusko predicted there could be some “profit-taking” in the aftermath of the hotly-anticipated bitcoin ETF launch, pointing to bitcoin’s almost 20% price crash following El Salvador’s adoption of bitcoin as legal tender in September, calling it a “mini-crash.”
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However, Yusko has previously said he expects the bitcoin price to climb as high as $250,000 with in the next five years, forecasting bitcoin’s value will by then equal gold—echoing billionaire investor Chamath Palihapitiya who earlier this month said he expects bitcoin to eventually replace gold.
Meanwhile, as bitcoin charges into new territory, some have predicted it will continue to outperform the likes of ethereum, cardano, Binance’s BNB, Ripple’s XRP, solana and dogecoin—most of which have far outpaced bitcoin’s rally over the last year.
“The setup on bitcoin looks very similar to how it was at this time last year, wherein the bellwether outperformed other altcoins and posted a massive rally in the fourth quarter,” Pankaj Balani, the chief executive of crypto derivatives exchange Delta, said in emailed comments.
“We expect bitcoin to outperform other cryptos here and expect to see a six-figure price on bitcoin before the end of this year.”